Your Future. Made at McDonald’s. Your path to becoming a McDonald’s franchisee. 1 Prospective McDonald’s Franchisee, Thank you for your interest in McDonald’s. Under the arches, there is immense opportunity to grow and prosper with one of the world’s strongest brands. We stand tall on the shoulders of our founders. Ray Kroc and Fred Turner grew McDonald’s on bold ambition and four core principles that we still carry with us: Quality, Service, Cleanliness and Value. Fast forward to today and we are changing the face of our brand. Through our growth plan, customers are seeing a more modern McDonald’s, and we are evolving by improving our food, experience, people and value. McDonald’s is 95% franchised in the U.S., and we are outperforming our competition due to the hard work and commitment of our franchisees. As you will see throughout this brochure, franchisees are the key ingredient to our brand. As a franchisee, you have the unmatched resources of our system. This includes experts who provide support and consultation in areas such as marketing, operations, HR and finance. There is also extensive training to give you a strong foundation to drive sales, guest counts and cash flow. We find the franchisees who have the best success are willing to be involved in every aspect of the business, have great interpersonal skills, and are heavily involved in their community. While there is great responsibility that comes with owning a franchise and upholding a brand like ours, we believe our franchise model is the best in the world, and can reap many rewards for those who are willing to put in the work. I hope you enjoy reading more about our brand and exploring what it takes to build your future with McDonald’s. I wish you all the best as you pursue a franchise. Joe Erlinger President, McDonald’s USA 2 Table of Contents Why McDonald’s? Proven System ................................................................................................................................ 7 Global Brand ................................................................................................................................... 10 World-Class Training ..................................................................................................................... 12 Giving Back & Community Involvement ................................................................................. 14 Build a Legacy .................................................................................................................................. 16 Focused on the Future .................................................................................................................. 19 What It Takes Money Matters ............................................................................................................................... 24 What You Bring to the Table ........................................................................................................ 25 Let’s Get Started Becoming a McDonald’s Franchisee ........................................................................................ 27 3 Welcome to McDonald’s. Perhaps we were your first job. The go-to birthday outing for the kids. Your favorite fries. Maybe you’ve noticed the role we play in our communities and for charity. Or it just might be that you’ve wondered what it would be like to own a McDonald’s franchise. Have a seat. Let’s talk. Running a McDonald’s franchise is a once-in-a-lifetime experience. Think of the people you’ll meet … in the restaurant, across our organization and in the neighborhood. We couldn’t be more proud of the leadership our franchisees demonstrate each and every day. It takes heart, soul and a genuine commitment to the communities we serve. Prepare to feel good about what you do. Read on to find out what it takes to become a franchisee How may we help you become a franchisee? 4 Our History In 1954, Ray Kroc visited a small but successful restaurant in San Bernardino, California run by brothers Dick and Mac McDonald, and was stunned by the effectiveness of their operation. The McDonald’s brothers produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality and quick service. They were looking for a new franchising agent and Kroc saw an opportunity. In 1955, he founded McDonald’s System, Inc., a predecessor of the McDonald’s Corporation, and six years later bought the exclusive rights to the McDonald’s name and operating system. By 1958, McDonald’s had sold its 100 millionth hamburger. More than sixty years later, McDonald’s is a global brand focused on innovation for the future, including McDelivery, mobile ordering and self-serve kiosks to ensure the restaurant experience continues to be world class. 5 Why McDonald’s? 6 Proven System “McDonald’s can’t be successful unless our Franchisees are successful.” Ray Kroc McDonald’s Founder With over 60 years of experience, McDonald’s has become one of the most recognizable brands in the world. Our proven operating system allows us to maintain the highest standards of operations excellence successfully serving millions of customers each day. From support departments, operations experts, marketing talents, training specialists and more – our proven system and supplier partnerships are key to franchisee success. Using this unique approach, you are provided a roadmap for success. Becoming a McDonald’s franchisee gives you the independence of running your own business, but you have the support of the system. Our primary goal is to assist our franchisees in maximizing quality, service and cleanliness which helps you optimize sales and profits. You are in business for yourself, but not by yourself. “My top choice was McDonald’s due to the extensive training program and proven long-term strength of the brand.” Courtney Franchisee · New York 7 8 Louis’ Story Franchisee · Louisiana “I dreamt of being an entrepreneur since I was a child. When I was retiring from the New Orleans Police Department, I knew I could finally work towards my goal of owning a business. After considering several options, carefully weighing the pros and cons of each, my wife and I selected McDonald’s. I was so impressed with the work ethic and business savvy after speaking to McDonald’s franchisees at the time and knew that McDonald’s would be able to provide the opportunity for personal growth and learning that is so important to me. I felt like I would never stop learning with this brand – and wow, was I right! As a franchise owner, I have a platform to make an impact in the community and am able to support organizations that are near and dear, including the Boys and Girls Club and several Law Enforcement agencies and several other community programs. Additionally, we are able to help our people learn and grow every day. We make sure we educate our employees about the benefits McDonald’s affords, whether that entails additional education or life skill development, and are continuously looking for ways to make it fun to work in our restaurants. It is so wonderful to see our people develop and grow and knowing that, as a franchisee, I can foster that development is a great opportunity of owning a McDonald’s. I was given opportunities by people who believed in me in my lifetime. Their belief built my confidence, and that is why I am where I am today. I know that others need that same support and encouragement. The ability to instill confidence in others to achieve their goals is what drives me. My family and I are now positive influencers in our community and are brand ambassadors everywhere we go. We all love sharing our story, encouraging, and mentoring people who have the same dream of entrepreneurship.” 9 Global Brand Join the most recognizable brand in the world! McDonald’s provides its franchisees and more than 38,000 restaurants with the resources and support they need to thrive. We’ve developed an extensive network of the world’s finest suppliers that you can tap into from the beginning. And we continue to work closely with suppliers to ensure our franchisees’ restaurants are provided with the highest quality products at the most competitive prices. We also provide extensive support in marketing and have helped create a worldwide brand unmatched in the food service industry – a critical competitive advantage for your individual McDonald’s restaurant franchise. 10 Tony’s Story Franchisee · Nevada & Utah “I started as part of the crew at age 16 and progressed over the years to a Director of Operations. During my time working in the restaurant I was blessed to work for a franchisee who allowed me to develop leadership skills and implement people practices, which are instrumental to the organization today. After 30 years with McDonald’s I decided I wanted to run my own organization and to pass along the knowledge I had obtained. I believe a successful leader has a duty to give back, to train, and to share the results to help make our communities stronger. By investing in my team, we have had the opportunity to transform a number of restaurants. We have had visitors from around the world come to see what we do and how we’ve done it. That’s personally satisfying, but I’m most excited by what I see in my team. I love to help people rise up above what they thought they were capable of and become strong leaders.” 11 World-Class Training We devote significant time and resources to our highly regarded training and evaluation program for new applicants. You’ll learn about our systems and routines and we’ll train you to perform every role in a McDonald’s restaurant. At the end of the program, you will have all the skills you need to operate a restaurant and start to apply your own talents to make it a success. Most of your training will take place in a McDonald’s restaurant. You’ll be trained by an experienced franchisee and a team of others who will support your development. In addition to the in-restaurant training, you will complete a self-directed online curriculum as well as three formal leadership courses. The first two courses are held in Field Office training centers and the third course is a four-day course held at Hamburger University at our headquarters in Chicago.